Watford boss Malky Mackay says he is likely to bring in youngsters and loan signings ahead of the new season.
The Hornets staved off administration and then relegation from the Championship last term.
Mackay told BBC Three Counties Radio: "The phone's always buzzing but when people realise your budgets some players go off the radar.
"We've got a budget we have to stick to and it's restricting. It means we'll be going for younger players and loans."
Mackay has had to release a number of players during pre-season to ease the wage bill, including left-back Jon Harley and defender Jay DeMerit, who starred for the US at this year's World Cup.
It means the onus falls even more on the club's ability to bring talented young players through.
"It's not quite as easy as going out there and spending money on an experienced Championship footballer, that's not something we can do," said Mackay.
"The young group is one year more experienced, with youngsters coming through who have played 50 to 100 Championship games over the last couple of years.
"The expectations have shifted at the football club from coming down from the Premiership and challenging for promotion, to a club on the brink of administration and now very youth orientated.
"It's certainly a case this year that we are one of the lowest budgets in the division, but it's something of a challenge ahead of us."
One success story at Vicarage Road last season was the loan deal that brought Manchester United midfielder Tom Cleverly to the club.
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